The Importance of Your Rental Agreement

Today, many people are deciding to rent property, whether it is an apartment, condominium, or home rather then buying one. Renting is a great option for people who are in between jobs, not sure if they want to make a commitment to living in a certain area, are students, or who are currently saving for purchasing a home. However, it is important to understand the terms of a rental agreement before you sign one. Often, people tend to find a piece of property, decide that they like the location, and agree to move in without taking into consideration the terms and agreements set in place through the rental agreement. By knowing what to look for and understanding the legal importance of your rental agreement, you can ensure that your rental property arrangement will be one that not only satisfies your landlord, but also meets your needs.

First, you will need to understand the differences between a rental agreement and a lease. Though these terms are often used interchangeably, they are in fact two separate legal documents. A rental agreement is a legal and binding contract between a tenant and a landlord that involves the renting of a property on a month-to-month basis. The contract is automatically renewed at the end of each month. A lease is a legal contract between a tenant and landlord that is for a designated specific amount of time, say six months, a year, or two years. It is important to understand that with a rental agreement the terms of the agreement may change month to month, however with a lease your contract binds and secures your agreement for the duration of the agreement.

Understanding that you will be legally bound to the terms of your rental agreements, you can then see how important it is to read the agreement thoroughly before signing it. It is also a good idea to remember that when you are looking at rental properties, you should never feel pressured into signing a rental agreement before you have all of your questions answered. You should thoroughly discuss all issues that you have with the landlord before you ever pick up a pen and sign your name on the dotted line.

You should thoroughly inspect the premises before signing a rental agreement. If the landlord makes any references to things that are in disrepair and correcting them, you may want to jot those down in a notebook. Before you sign a rental agreement, ask the landlord to make a special note of these items in the agreement, or draw up your own separate paper and have these items pointed out. Be sure to have your landlord sign this statement as well. The last thing that you want to encounter is losing your security deposit over conditions that the landlord said he or she would fix from the beginning of your occupancy. Like the saying state, “Get it in writing!” If the landlord says it verbally, getting those statements in written form best protects you. If there are some aspects of the rental agreement that you don’t feel comfortable with, you may be able to work out a solution with the landlord, just be sure to have all changes or arrangements put into a written and signed contract.